Glaukos Company GKOS is well-poised for progress on the again of favorable scientific trial outcomes and a strong product pipeline. Nevertheless, stiff competitors is a priority.
Shares of this Zacks Rank #3 (Maintain) firm have risen 31.1% thus far this 12 months in opposition to the industry’s 3.8% decline. The S&P 500 Index has additionally decreased 5.6% in the identical timeframe.
Glaukos, with a market capitalization of $5.53 billion, is a number one ophthalmic medical expertise and pharmaceutical firm. The corporate has a trailing four-quarter common earnings shock of 8.11%.
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Key Catalysts
Sturdy Product Demand: Glaukos’ rising share worth is essentially pushed by the success of its flagship product, iStent. The corporate delivered strong efficiency throughout 2024 and maintains a good enterprise outlook, strengthening traders’ confidence. Moreover, the excessive demand for Glaukos’ worldwide glaucoma and Corneal Well being merchandise continues to gasoline traders’ optimism.
On its fourth-quarterearnings name Glaukos highlighted the rising adoption of iStent Infinite for glaucoma sufferers, notably these unresponsive to different remedies. This progress has been fueled by enhanced scientific schooling and improved market entry. Moreover, 5 out of seven Medicare Administrative Contractors have launched draft native protection determinations for iStent Infinite. That is anticipated to increase affected person entry.
Glaukos’ revenues surpassed estimates within the fourth quarter of 2024 as a consequence of excessive demand for its merchandise. Consequently, the corporate issued full-year 2025 income steering of $475-$485 million. The corporate’s 2025 gross sales and earnings are doubtless to enhance 25.5% and 52.7%, respectively.
Increasing Product Portfolio: The iStent portfolio considerably boosted Glaukos’ glaucoma franchise revenues in 2024. Moreover, the launch of iDose TR within the second quarter of 2024 is already enhancing income progress. With a everlasting J-code for iDose TR efficient from July 1, affected person entry is rising, which can drive 2025 gross sales.
Glaukos continues to spend money on its product pipeline, together with its corneal cross-linking remedy, Epioxa. The corporate’s new drug utility looking for approval for the remedy is underneath overview, with FDA approval anticipated by the tip of 2025. GKOS has accomplished two pivotal trials on Epioxa, demonstrating its favorable efficacy, tolerability and security profiles. It is usually making ready for a pivotal research on its next-generation iDose remedy, iDose TREX, which is about to start quickly. These initiatives are poised to drive long-term progress.
Glaukos advantages considerably from its partnership with Topcon Healthcare and RadiusXR, increasing entry to glaucoma diagnostics by the Encourage wearable imaginative and prescient testing platform. By integrating RadiusXR’s Encourage with Topcon’s Concord digital ecosystem, Glaukos enhances affected person engagement, streamlines prognosis and helps early illness detection. This collaboration strengthens its management in ophthalmic care, will increase market penetration and enhances its current glaucoma remedies. Moreover, improved accessibility and broader adoption of visible area testing create new income alternatives whereas reinforcing Glaukos’ dedication to advancing modern, patient-centric options in eye care, finally driving progress and enhancing outcomes in glaucoma administration.
Internationally, Glaukos is concentrated on increasing its footprint. The corporate sells its merchandise by subsidiaries in 17 international locations and impartial distributors in different markets. Glaukos’ worldwide glaucoma franchise reported report gross sales of $98.6 million in 2024, reflecting 20% year-over-year progress. This world growth is predicted to proceed supporting the corporate’s long-term progress trajectory.
What’s Hurting GKOS?
GKOS at present is determined by a restricted variety of third-party suppliers, together with some sole suppliers, for elements of the iStent, iStent inject fashions and different pipeline merchandise. If any of those suppliers fail to supply enough portions of elements or medication in a well timed method or on acceptable phrases, Glaukos would wish to hunt various sources.
The corporate faces important headwinds that would drag down its worldwide efficiency. The expiration of a good French rebate settlement will remove a key income increase, whereas overseas alternate (FX) pressures are anticipated to additional erode earnings. Moreover, rising competitors in main markets like Japan and France poses a rising risk, as new product launches from opponents might take market share away from Glaukos. With worldwide glaucoma progress now projected to sluggish to excessive single digits, the corporate’s capability to take care of its management within the area seems more and more unsure.
Glaukos Company Worth
Glaukos Corporation price | Glaukos Company Quote
Estimate Development
The underside-line estimate for GKOS is pegged at a lack of 88 cents for 2025, which narrowed 18.5% up to now 30 days. The Zacks Consensus Estimate for 2025 revenues is pinned at $481.2 million.
Shares to Contemplate
Some better-ranked shares within the broader medical area are Masimo MASI, Boston Scientific BSX and Aveanna Healthcare AVAH. At current, Masimo sports activities a Zacks Rank #1 (Sturdy Purchase), whereas Boston Scientific and Cardinal Well being carry a Zacks Rank #2 (Purchase). You’ll be able to see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have gained 5.6% thus far this 12 months. Estimates for MASI’s 2024 EPS have elevated 1.2% to $4.10 up to now 30 days. MASI’s earnings beat estimates in every of the trailing 4 quarters, with the typical shock being 17.1%. Within the final reported quarter, it posted an earnings shock of 16.6%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 up to now 30 days. Shares of the corporate have surged 10.9% thus far this 12 months in contrast with the trade’s progress of 10.4%. BSX’s earnings surpassed estimates in every of the trailing 4 quarters, with the typical shock being 8.25%. Within the final reported quarter, it delivered an earnings shock of seven.69%.
Estimates for Aveanna Healthcare’s 2025 EPS have remained secure at 7 cents up to now 30 days. Shares of the corporate have misplaced 15.7% thus far this 12 months in opposition to the trade’s 4.4% progress. AVAH’s earnings surpassed estimates in every of the trailing 4 quarters, with the typical shock being 9.6%. Within the final reported quarter, it delivered an earnings shock of 135.00%.
7 Finest Shares for the Subsequent 30 Days
Simply launched: Consultants distill 7 elite shares from the present listing of 220 Zacks Rank #1 Sturdy Buys. They deem these tickers “Most Possible for Early Worth Pops.”
Since 1988, the complete listing has overwhelmed the market greater than 2X over with a median achieve of +24.3% per 12 months. So be sure you give these hand picked 7 your rapid consideration.
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Masimo Corporation (MASI) : Free Stock Analysis Report
Glaukos Corporation (GKOS) : Free Stock Analysis Report
Aveanna Healthcare Holdings Inc. (AVAH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
